Is It Ethical to Include Transfer Conditions in Appointment Letters for New Hires?

I am working in the Human Resource Department of a small hospital. However, the management is coming up with a new branch attached as a sister firm to the parent organization. I, at my executive level, am being asked to draft appointment letters for all newly joined staff with a condition to mention regarding TRANSFER FROM PRESENT INSTITUTION TO OTHER BRANCH AS AND WHEN IT COMES INTO FORCE.

I would like to ask HR pundits, is it ethical in judicial terms to draft an appointment letter with terms and conditions related to transfer orders included in it?

Awaiting replies..!!

Dear Aankit,

Inter-company transfers within the group are common. There is nothing wrong if you include this clause in the appointment letter.

Example of a Successful Strategy

Let me give you an example of a prominent restaurant chain in Bangalore. Whenever they opened a new restaurant, they did not hire new staff, except for lower-ranking positions such as housekeeping or dishwashers. Instead, they transferred two employees from departments like F & B Production and F & B Service to the new restaurant. This strategy contributed to the restaurant's immediate success. New staff were then hired for the replaced positions in the existing restaurants. Additionally, many employees were transferred for promotional opportunities.

Importance of Organizational Culture

Every company has its own organizational culture. It is crucial that the new business unit employs individuals who align with this culture. There is a significant risk in hiring individuals for the new unit who do not fit into the existing culture.

All the best!

Regards,
Dinesh V Divekar